Events Calendar

Webinar: Lending to Self-Employed Borrowers
Thursday, July 30, 2020, 03:00pm - 04:30pm

Lending to self-employed borrowers can be fraught with challenges, including proper documentation, income validation, repayment sources, etc. This webinar will demystify underwriting for these borrowers and provide useful advice on how to retrieve the information you need.


  • Use Form 1040 as the primary means to identify income sources for self-employed borrowers
  • Identify underwriting documentation required to determine a borrower’s payment coverage ability, liquidity, and leverage
  • Explain the underwriting documentation requirements to self-employed borrowers
  • Review your policy regarding self-employed borrowers to identify enhancement opportunities
  • Document and identify all repayment sources
  • Lend more confidently, especially with unsecured credit


Lending to self-employed borrowers can be challenging, especially for smaller financial institutions that specialize in retail credits, without a seasoned commercial lending division to reference or underwrite credits. This presentation will take the mystery out of underwriting self-employed borrowers and provide practical steps to: identify income sources; request verification documents, including income tax returns and K-1 schedules, deriving cash available to service debt; and identify required debt service, including debts not listed on the borrower’s credit report.

In addition, this presentation will provide insight regarding the importance of understanding borrower liquidity and leverage. The strength of a borrower’s personal financial statement is especially important when the credit is unsecured, or the LTV is at, or above, policy limits.


This informative session would best suit lenders and credit analysts unfamiliar with lending to self-employed borrowers. This training is especially critical for institutions focused on retail lending and institutions looking to strengthen underwriting processes for borrowers with repayment sources not identified via a W-2 or retirement income.


  • Checklist of suggested required documents for varying entity types owned by self-employed borrowers
  • Employee training log
  • Interactive quiz

SPEAKER:  Aaron Lewis, Young & Associates, Inc.

Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the banking industry, his expertise is now dedicated to the lending division of Young & Associates where he assists financial institutions with loan, ALLL, policy, and credit-process and compliance reviews. He also conducts seminars on credit risk and compliance.

Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of a community financial institution in southeast Michigan and managed all facets of the lending function, including originations, underwriting, ALLL analysis, servicing, and secondary market compliance. He holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.